Professional Documents
Culture Documents
Chapter 1
McGraw-Hill/Irwin
Deliver products and services faster, more conveniently, and at lower prices.
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Organizational Structure
Decentralization is the delegation of decisiondecisionmaking authority throughout an organization.
Treasurer
Process Management A business process is a series of steps that are followed in order to carry out some task in a business.
Product Design Customer Manufacturing Marketing Distribution Service
R&D
Traditional Push Manufacturing Company Traditional push manufacturing Raw materials Large inventories Work in process Finished goods
Materials waiting Completed products to be processed. awaiting sale. Partially completed products requiring more work before they are ready for sale.
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Lean Production
Identify value in specific products/services. Identify the business process that delivers value.
Lean Production
The five step process results in a pull manufacturing system that reduces inventories, decreases defects, reduces wasted effort, and shortens customer response times.
Theory of Constraints
A constraint (also called a bottleneck) is anything that prevents you from getting more of what you want. The Theory of Constraints is based on the observation that effectively managing the constraint is the key to success.
The constraint in a system is determined by the step that has the smallest capacity.
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Theory of Constraints
Only actions that strengthen the weakest link in the chain improve the process.
3. Focus on improving the weakest link. 4. Recognize that the weakest link is no longer so.
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Six Sigma
A process improvement method relying on customer feedback and fact-based data gathering and analysis techniques to drive process improvement. Refers to a process that generates no more than 3.4 defects per million opportunities. Sometimes associated with the term zero defects.
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Six Sigma
Stage Define The Six Sigma DMAIC Framework Goals Establish the scope and purpose of the project. Diagram the flow of the current process. Establish the customer's requirements for the process. Gather baseline performance data related to the existing process. Narrow the scope of the project to the most important problems. Identify the root cause(s) of the problems identified in the Measure stage. Develop, evaluate, and implement solutions to the problems. Ensure that problems remain fixed. Seek to improve the new methods over time.
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Competence
Provide accurate, clear, concise, and timely decision support information.
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Confidentiality
Integrity
Abstain from activities that might discredit the profession.
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Credibility
Disclose all relevant information that could influence a users understanding of reports and recommendations.
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Corporate Governance
The system by which a company is directed and controlled.
Board of Directors
Top Management
To pursue objectives of
Stockholders
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Once a company identifies its risks, perhaps the most common risk management tactic is to reduce risks by implementing specific controls.
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Customers
Employees
Suppliers
Communities Stockholders
CSR extends beyond legal compliance to include voluntary actions that satisfy stakeholder expectations.
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End of Chapter 1
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